Anti-Dumping Duty on Electrical Steel Risks Driving Up Transformer Costs and Stalling Grid Expansion, Warns GTRI.
On June 22, 2026, the Directorate General of Trade Remedies (DGTR) initiated an anti-dumping probe concerning the imports of cold-rolled grain-oriented electrical steel (CRGO) and amorphous metals from key countries including China, Japan, South Korea, and Russia. The investigation was prompted by a formal complaint from JSW JFE Electrical Steel Nashik Pvt Ltd, highlighting the significant share of CRGO imports, which account for nearly 90% of India’s domestic requirements. This probe will analyze data from April 1, 2025, to March 31, 2026, while assessing potential injuries during the period from 2022-23 to 2024-25. Given that CRGO steel is crucial for the magnetic core of power and distribution transformers, it plays a vital role in minimizing energy losses and optimally facilitating electricity transmission.
The implications of imposing anti-dumping duties could be far-reaching for both the common citizen and the broader market. Higher manufacturing costs for transformers would likely lead to increased prices for electricity and related services, adversely affecting consumers. As India commits ₹9.15 lakh crore to enhance its power grid infrastructure by 2032—aiming to add 1,91,000 circuit kilometres of transmission lines, and significantly boosting transformer capacity—delays or increased costs could hinder progress. With domestic production of CRGO limited to only 10% of annual consumption needs (estimated at 4,00,000-4,50,000 tonnes), the country remains heavily reliant on imports, particularly from the nations implicated in this probe.
Looking ahead, it is essential for the government and the RBI to strategically address these concerns to ensure energy security and infrastructure development continues unhindered. The long-term outlook will hinge on whether domestic production capabilities can be bolstered to reduce reliance on imports, potentially through investments in local manufacturing or incentives for existing players. Policymakers may also consider balancing anti-dumping measures with supportive frameworks to encourage domestic production without stunting the growth of essential infrastructure projects. Ultimately, the focus will need to be on creating a sustainable energy landscape that can address both consumer needs and economic growth goals.
Source: The Hindu
(Expert Note: This report was independently prepared by the Wealthova Economy team.)